Opting in or out of a pension scheme
From Catalyst
Contents
Summary
This article explains how to deal with employees wishing to opt in or opt out of a pension scheme.
Opting In and Joining
Workers who are not Eligible Jobholders may choose to opt in to or join a pension scheme. They must give you written notice that they wish to opt in or join:
- Go to " Run Payroll".
- Press <Shift+F10> on the employee.
- On the [Tax, NI and Pension] tab, enter the date notified into "Notice received date".
- Click [Done] and [Accept].
- When Platinum processes the payroll for that date, it will reassess the employee.
- Platinum will then take action depending on their circumstances, from the next pay period:
- If the worker is a Non-eligible Jobholder, Platinum will automatically opt them into the auto enrolment scheme.
- If the worker is an Entitled Worker then you the employer must make arrangements under the scheme rules or policy terms to create active membership of a pension scheme for the entitled worker. The scheme used in this situation does not have to be the automatic enrolment scheme or even a qualifying scheme.
 | If you need to create a new scheme, please see this article. |
- Once set up, from " Run Payroll", press <Shift+F10> on the employee.
- On the [Tax, NI and Pension] tab, select the "Pension scheme" they are joining and enter the date into "Non-qualifying scheme" -> "Scheme joining date".
- Click [Done] and [Accept].
 | When changing pension details for any employee, it is important to check the pension deductions in the current payroll period. If an employee is opting in, then they will not be assessed until the following payroll period. |
Opting Out and Ceasing Active Membership
Before a jobholder can choose to opt out of pension scheme membership, they must:
- have become an active member of the pension scheme under the automatic enrolment or opt-in provisions, and
- have been given the enrolment information from their employer.
They should :
- Hand you an Opt Out Notice, usually provided by the pension scheme.
Opting out within the allowed period
If they do this and you receive a valid opt out notice within the allowed opt out period then follow the steps below in order.
- Go to " Run Payroll".
- Press <Shift+F10> on the employee.
- Press <Shift+F7>.
- At "Report" type 'pRF'.
- Click [Start].
- If the report appears on screen, press <F2> to print the report.
 | If the employee has opted out within the required time frame, you will need to refund their contributions to date. If their opt out date is outside the time frame, you should not enter a pension refund. Check with your pension provider if you are unsure whether they should be given a refund. |
- Whilst in the employee record, press <F8>.
- Click [Other] when prompted for the type of adjustment.
- Enter a date within the current payroll period (shown in brackets below the field).
- Enter the comment 'Pension Refund'.
- At "Employee company pension" and "Employer company pension" enter the figures for amounts deducted to date, from the 'Employee Pension Refund' report. These figures should be entered as negative values.
- Click [Done] and [Accept].
| You must only refund amounts deducted in the current tax year. |
 | You cannot refund, via the FPS, more than has been deducted in this current tax year. |
- On the [Tax, NI and Pension] tab in " Employee Properties", enter the date into "Opt out date".
- Set "Pension scheme" to 'No pension' and clear any additional pension contribution amounts.
- Click [Done] and [Accept].
Repeated Opt Out
If the employee has previously opted out then been automatically re-enrolled you will need to clear the Opt Out date from their record prior to following the above steps.
- Go to " Payroll Maintenance Options Add or Edit Employees".
- Enter the employee name and click [Search].
- Go to the [Tax, NI and Pensions] tab.
- Click on the "Opt out" field and press <Ctrl+F2> to clear the date.
- Click [Done] and [Accept].
- Follow the steps in the section above to opt the employee out and provide a refund, if applicable.
Opting out outside the allowed period
If they wish to opt out after the allowed opt out period then:
- Go to " Run Payroll".
- Press <Shift+F10> on the employee.
- On the [Tax, NI and Pension] tab in " Employee Properties", enter the date into "Opt out date".
- Set "Pension scheme" to 'No pension' and clear any additional pension contribution amounts.
- Click [Done] and [Accept].
See also
- How do I prepare for automatic enrolment?
- How do I set up a pension scheme in Platinum Payroll?
- How do I run a payroll period?
